Media mogul Barry Diller's People Inc (IAC.O) said on Monday it has ​proposed to buy MGM Resorts (MGM.N), valuing the casino operator at more than $18 billion.

The ‌offer comes just weeks after Diller, the digital media company's chairman, told shareholders in an April 28 letter that People would sharpen its focus on its MGM stake, ​calling the stock "wildly undervalued."

People currently owns 26.1% of the outstanding ​common stock of MGM. It is planning to bid $48.30 a ⁠share in cash for the remaining company, representing a premium of about ​10.6% to MGM's Friday close of $43.67.

MGM's shares rose more than 10% in ​premarket trading, while those of People - renamed from IAC in April - rose nearly 3%.

MGM Resorts did not immediately respond to a Reuters request for comment.

Diller's interest in MGM dates ​back to the COVID-19 pandemic, when he began accumulating shares in the ​casino operator when its shares were battered by closures and travel restrictions.

MGM owns marquee ‌properties ⁠that account for roughly 40% of the Las Vegas Strip. However, the casino operator has been struggling with sluggish footfalls in Las Vegas, and in recent quarters has relied on growth in its China properties, including ​Macau, and digital operations.

The ​company's BetMGM venture has ⁠also emerged as one of the leading U.S. online sportsbooks, giving higher exposure to a digital gambling market that ​analysts have been bullish on.

For Diller, MGM is a ​sharp ⁠departure from digital media, giving his group access to an industry focused on travel and tourism at a time when markets remain volatile.

The offer also marks ⁠another major ​takeover attempt in the casino sector. Last ​week, hospitality billionaire Tilman Fertitta's firm announced the takeover of Caesars Entertainment (CZR.O) in a $17.6 billion ​deal.